Efficient use of resources; why is only X percentage of National Education Budget being spent

Hypothesis

• District Education Departments do not have the capacity for effective utilization of budget.

Method

• Analysis of budget of two Districts – 2006-07.• District 1 – Families 335000 Schools 1428• District 2 –Families: 225000 Schools: 937

Budget heads

• Non Development; Salaries and Non salaries – Stationary, POL, Honorariums; SMC funds

• Development: Capital – Civil Works Others – Furniture

Case Study – 1

Budget Utilization – Education Department

Development Budget

• 2% of total budget for district education department

• 70% of allocated budget utilized during financial year 06 – 07.

Common Reasons for Under Utilization of Development Budget

• Schemes completed in savings – highest %age• Schemes dropped being unfeasible land issue,

HT Line not available• Delay due to slow work progress by

contractor; rates revision; death of contractor; conflict with community on land and access

• Delay in provision of demand notice – issue of Electricity

Budget – Comparison

• Non Development: Rs. 1,112,191,731

• Spent:Rs 1,089,107,855

• Unutilized:Rs 23,083,876(2.08%)

• Non Development:Rs 651,801,535

• Spent:Rs 609,149,878

• Unutilized:Rs 42,741,657 (6%)

District - 1 District - 2

Variables for Analysis

1. Repair and maintenance of transport2. Repair of machinery and equipment; 3. Furniture and fixture4. Repair of building and structure5. Traveling allowance6. Rent of office building7. SMC

Head: Repair and maintenance of transport

• Budget provision: 440,00• Addition in June : 40,000• Total : 480,000• Spent till May :264,424• In June : 80,377• Unspent :

135,199 or 30%

• Possible Reason: overestimation in February

•Budget provision : 490,000

•Addition in June : NIL

•Spent till May :70,616

•In June :15,540•Unspent : 403,844

or 80%•Possible Reason:

vehicles not purchased

District - 1 District - 2

Head: Repair Machinery and equipment

• Budget provision: 962,000• Addition in June: 257,000• Total :1,218,000• Spent till May :

80,400• Spent in June : 674,071• Unspent : 464,529

or 38%

• Possible Reason: June fever; lack of focus on this head during the year

•Budget provision: 439,420

•Addition in June : NIL

•Spent till May : 229,304

•Spent in June : 20,690

•Unspent : 189,507 or 43%

•Possible Reason: Overestimation

District - 1 District - 2

Head: Repair of Furniture and fixture

• Budget provision: 1,967,000• Revised :1,232,493

• Spent till May : 107,550• Spent in June :

684,617• Unspent : 440,325

or 36%

• Possible Reason: June fever; lack of focus on this head during the year

•Budget provision : 658,430

•Revised:

•Spent till May : 574,925

•Spent in June : 24,827

•Unspent : 58,678

or 9%Possible Reason:

District - 1 District - 2

Head: Repair of Building and structure

• Budget provision:7,500,000• Revised : Nil

• Spent till May : Nil• Spent in June :7,500,000• Unspent: NIL

•Budget provision: 7,317,917

•Revised : Nil

•Spent till May : Nil

•Spent in June :4,038,025

•Unspent :3,279,892

District - 1 District - 2

Head: Traveling allowance

• Budget provision : 2,526,239• Revised: 2,515,171 (11,068)• Spent till May: 1,163,291• Spent in June: 791,695

• Unspent : 560,185• Possible Reasons: activities

performed but late payment; -------------

•Budget provision: 1,776,011

•Revised:

•Spent till May: 1,180,444

•Spent in June: 1,110,511

•Excess: 514,944

District - 1 District - 2

Head: Rent of office building

• Budget provision: 1,010,000• Revised : 1,028,500

• Spent till May: 185,030

• Spent in June: 507,114• Unspent:

336,356• Possible Reasons: -------------

•Budget provision: 342,000

•Revised: ••Spent till May: 65,998

•Spent in June: 70,598

•Unspent: 205,404

District - 1 District - 2

Head: Internal Merit scholarship

• Budget provision: 960,000• Revised: Nil

• Spent till May: 488,740

• Spent in June: Nil• Unspent:

471,260Possible Reasons: -------------

•Budget provision: 241,277

•Revised:

•Spent till May: Nil

•Spent in June: 241,277

•Unspent: Nil

•Possible Reasons: -------------

District - 1 District - 2

Head: SMC

• Budget provision:27,290,000 for 935 schools

• Revised : Nil

• Spent till May : Nil• Disbursed in June: 27,290,000• Spent / Unspent: No

information• Possible Reasons: -------------

Budget provision:22,040,000

Revised : Nil

Spent till May : NilDisbursed in June: 22,040,000Spent / Unspent: No

informationPossible Reasons: -------------

District - 1 District - 2

Common Reasons for Under Utilization of Non-Development Budget

• Issue of sanctioned posts VS recruitment – Highest %age– Recruitment is a political issue; delays in issue of

appointment orders

• Furniture: DDO did not know about the availability of funds till April; delays in approval ; DDO did not know about the source from whom to get approval; no one wanted to be responsible for the purchase of furniture – fear of accountability